Can Financials Soar If Bonds Yield Rise Above 3%?


Financials have been down and out recently but the last two days they showed some resiliency in the face of broader selling. 

The Bank Index looks set to turn higher.

Widening out the picture, since 2016, the rising rates shown on the $TNX chart have created sudden moves on the $DJUSBK index.

I posted an article in Don't Ignore This Chart Friday afternoon with this price chart of the TLT. If the TLT price is going to break down, sending yields higher, perhaps we can expect another surge in the US financial stocks.

I recorded the first instalment of the new StockCharts TV live show The Final Bar with Greg Schnell. You can follow the link to check out a 30 minute show that outlines how set up everything is for reversal right now.

Good trading,
Greg Schnell, CMT, MFTA

Greg Schnell
About the author: , CMT, is a Senior Technical Analyst at specializing in intermarket and commodities analysis. Based in Calgary, he is a board member of the Canadian Society of Technical Analysts (CSTA) and the chairman of the CSTA Calgary chapter. He is an active member of both the Market Technicians Association (MTA) and the International Federation of Technical Analysts (IFTA).

Greg is also the co-author of Stock Charts for Dummies (Wiley, 2018). Greg joined in 2012 and has be instrumental in helping launch a variety of new blogs and other commentary platforms. Presently, Greg contributes market analysis commentary to The Canadian Technician, Commodities Countdown and Don't Ignore This Chart blogs. Learn More
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